Copyright? 2001 by Harcourt,Inc.,All rights reserved,Requests for permissions to make copies of any part of the work should be mailed to
the following address,Permissions Department,Harcourt,Inc.,6277 Sea Harbor Drive,Orlando,Florida 32887-6777.
INTERNATIONAL MARKETING 6e
Global Promotional Strategies
Chapter 20
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-2
Worldwide Media Strategy
Challenges of country and regional
differences
Cultural,ethnic,regulatory,demographic
Responses to challenges
Social responsibility
(Cause-related marketing)
Sound management systems
excellent communications
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-3
Determine the target audience
Determine campaign objectives
Determine the budget
Determine media strategy
Determine the message
Determine campaign approach
Determine campaign effectiveness
7 Stages in Promotional Campaign Planning
Source,Framework adapted from Dean M,Peebles and John K,
Ryans,Management of International Advertising,A Marketing
Approach,(Boston,MA,Allyn & Bacon,1984),72-73.
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-4
Planning Promotional Campaigns
Target Audience
Promotional campaigns affect more than
consumers who purchase the product or service.
– Suppliers,intermediaries,government,local community,
bankers and creditors,media organizations,
shareholders,and employees.
Research to determine multimarket target
audiences is required as
firms become more
internationally involved.
Corporate image advertising
Umbrella campaigns
Global image campaigns
Who are our
customers?
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-5
Campaign Objectives
Global objectives
General guidelines and control for broad-based
campaigns (consistency of message)
Regional objectives
Local objectives
Specific and measurable targets
(awareness,image,market
share) for individual markets.
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-6
The Budget
The promotional budget links marketing
objectives with media,message,
and control decisions.
Acts as a control mechanism.
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-7
Media Availability
$300 billion spent on worldwide media in 1999!
117
3 5,7
2 0,8
2 0,3
9,7
8,8
5,5
5,4
5,3
3,7
0 20 40 60 80 100 120
U,S
J a p a n
U,K,
G e r m a n y
F r a n c e
B r a z i l
A u s t r a l i a
C a n a d a
S o u t h K o r e a
N e t h e r l a n d s
T o ta l Sp e n d i n g (b i l l o n s ),1 9 9 9
Source,Adapted from,Top Global Ad Markets,”
Advertising Age International,May,1999,35-38.
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-8
Media Availability
400
297
323
230
158
54
263
157
140
240
0 50 100 150 200 250 300 350 400 450
U,S
J a p a n
U,K,
G e r m a n y
F r a n c e
B r a z i l
A u s t r a l i a
C a n a d a
S o u t h K o r e a
N e t h e r l a n d s
Pe r C a p i ta Sp e n d i n g ($ ),1 9 9 9
Source,Adapted from,Top Global Ad Markets,”
Advertising Age International,May,1999,35-38.
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-9
Internet Advertising Spending By Region
1 6,6 7 5
0 2,0 0 0 4,0 0 0 6,0 0 0 8,0 0 0 1 0,0 0 0 1 2,0 0 0 1 4,0 0 0 1 6,0 0 0 1 8,0 0 0
N o r t h A m e r i c a
E u r o p e
A s i a - P a c i f i c
L a t i n A m e r i c a
T o t a l
1998 1999 2000 2001 2002
Source,Adapted from http://www.forrester.com
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-10
Product Influences
Product advertising restrictions
National consumer protection regulations
Special rules in certain markets
reflecting local cultural values.
Advertiser’s responses
Adaptation
– Corporate image advertising
– Sports sponsorships
Innovation
– product placement
Diversification
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-11
Audience Characteristics
Strategy is to reach the intended target
audience with the minimum of waste.
Marketing strategist needs to know
Media distribution (number of copies)
Media audience compostion
Advertising exposure
Advertising perception
Consumer response
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-12
Global Media
Print publications providing global coverage
with regional language and content editions.
Pan-regional radio and television,the Internet
Important global media characteristics
Targetability
Client-compatible editorial
Editorial quality
Who advertises in global media?
Airline,financial services,
telecommunication,automobile,and tobacco
companies
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-13
The Promotional Message
Know customer habits and motivations,What
are consumers really buying and why?
Factors in developing the message:
Diffusion of the product or service into the market.
Criteria on which customers evaluate the product.
The product’s positioning.
The ideal is to have a world brand.
,…a product that is manufactured,packaged,and
positioned the same around the world.”
Localize international symbols with regional or
country area themes and personalities.
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-14
The Media Campaign Approach
What type of outside services to use?
How to establish decision-making authority?
Outside services are chosen by their quality
of coverage.
The value of outside expertise
Creative development skills
Media buying savvy
Specialty marketing knowledge
Conflict in the use of mega-agencies
Conflicts of interest when two competitors are
represented by the same agency
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-15
The Top 5 Global Ad Agencies
Ad Organization Headquarters
WPP Group London
Omnicom Group New York
Interpublic Group of Cos,New York
Dentsu Japan
Young & Rubicam New York
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-16
Decision-Making Authority
Centralized or decentralized
decisions about advertising?
Centralization= scale,synergy,consistency
Decentralization= proximity,flexibility,sensibility
Overall organizational goal to continually
improve advertising quality at the local level.
Coordinated decentralized approach to pan-
regional campaign development
strong central control
knowledge of local markets
avoids NIH syndrone
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-17
Pan-Regional Campaign Development
Preliminary Orientation
Regional Communication Strategy Definition
Advertising Creative Review
Qualitative Research Store
Research Review
Final Creative Review
Budget Approval - Home Office
Campaign Buys - Media Buys Local Countries
Source,Adapted from David A,Hanni,John K,Ryans,and Ivan R,Vernon,
“Coordinating International Advertising,The Goodyear Case Revisited for Latin
America,” Journal of International Marketing 3 (number 2,1995),83-98.
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-18
Measuring of Advertising Effectiveness
Typical effectiveness-testing techniques
Pre-testing of copy appeal and brand recognition
Post-testing of product or brand recognition
Measuring campaign’s impact on sales
Measures
Sales increases and sales pattern changes
Increases in consumer awareness and recall
Intention to buy,coupon return
There are no universally accepted
parameters of measurement and analysis to
compare one country audience to another.
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-19
50% off
with
Coupon
Other Promotional Elements
Personal Selling
Typically associated big-ticket (high-priced) items
such as industrial goods.
Proper training is crucial to success
Sales Promotions
Couponing,sampling premiums,education and
demonstration,point-of-purchase,direct mail
The impact of promotions on intermediaries
must be carefully considered.
Varying local regulations may
prevent or limit the types and
use of sales promotions.
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-20
Public Relations
Public Relations (PR) builds images
PR’s goal is understanding and acceptance.
PR provides internal and external acceptance
for the organization.
Internally,PR functions to
Provide Information through internal
publications (e.g.,newsletters
and intranets)
Help create the appropriate
corporate culture
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-21
Public Relations… continued
Externally,PR in multinational corporations is
concerned with
Building a global identity to build sales,product
and service differentiation
Providing information furthering
marketing objectives
Anticipating and counting
criticism of the organization
Taking a lead role in crisis
management
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-22
Association Marketing
Sponsorship Marketing
Marketers provide funds as sponsors
of sports and cultural events.
Expected benefits are
association with a positive
image of global reach
and excellence.
Cause-related marketing
Combination of PR,sales promotion,
and corporate philanthropy that
expresses the organization’s
social vision and support for
a planned long-term social policy.
the following address,Permissions Department,Harcourt,Inc.,6277 Sea Harbor Drive,Orlando,Florida 32887-6777.
INTERNATIONAL MARKETING 6e
Global Promotional Strategies
Chapter 20
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-2
Worldwide Media Strategy
Challenges of country and regional
differences
Cultural,ethnic,regulatory,demographic
Responses to challenges
Social responsibility
(Cause-related marketing)
Sound management systems
excellent communications
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-3
Determine the target audience
Determine campaign objectives
Determine the budget
Determine media strategy
Determine the message
Determine campaign approach
Determine campaign effectiveness
7 Stages in Promotional Campaign Planning
Source,Framework adapted from Dean M,Peebles and John K,
Ryans,Management of International Advertising,A Marketing
Approach,(Boston,MA,Allyn & Bacon,1984),72-73.
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-4
Planning Promotional Campaigns
Target Audience
Promotional campaigns affect more than
consumers who purchase the product or service.
– Suppliers,intermediaries,government,local community,
bankers and creditors,media organizations,
shareholders,and employees.
Research to determine multimarket target
audiences is required as
firms become more
internationally involved.
Corporate image advertising
Umbrella campaigns
Global image campaigns
Who are our
customers?
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-5
Campaign Objectives
Global objectives
General guidelines and control for broad-based
campaigns (consistency of message)
Regional objectives
Local objectives
Specific and measurable targets
(awareness,image,market
share) for individual markets.
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-6
The Budget
The promotional budget links marketing
objectives with media,message,
and control decisions.
Acts as a control mechanism.
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-7
Media Availability
$300 billion spent on worldwide media in 1999!
117
3 5,7
2 0,8
2 0,3
9,7
8,8
5,5
5,4
5,3
3,7
0 20 40 60 80 100 120
U,S
J a p a n
U,K,
G e r m a n y
F r a n c e
B r a z i l
A u s t r a l i a
C a n a d a
S o u t h K o r e a
N e t h e r l a n d s
T o ta l Sp e n d i n g (b i l l o n s ),1 9 9 9
Source,Adapted from,Top Global Ad Markets,”
Advertising Age International,May,1999,35-38.
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-8
Media Availability
400
297
323
230
158
54
263
157
140
240
0 50 100 150 200 250 300 350 400 450
U,S
J a p a n
U,K,
G e r m a n y
F r a n c e
B r a z i l
A u s t r a l i a
C a n a d a
S o u t h K o r e a
N e t h e r l a n d s
Pe r C a p i ta Sp e n d i n g ($ ),1 9 9 9
Source,Adapted from,Top Global Ad Markets,”
Advertising Age International,May,1999,35-38.
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-9
Internet Advertising Spending By Region
1 6,6 7 5
0 2,0 0 0 4,0 0 0 6,0 0 0 8,0 0 0 1 0,0 0 0 1 2,0 0 0 1 4,0 0 0 1 6,0 0 0 1 8,0 0 0
N o r t h A m e r i c a
E u r o p e
A s i a - P a c i f i c
L a t i n A m e r i c a
T o t a l
1998 1999 2000 2001 2002
Source,Adapted from http://www.forrester.com
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-10
Product Influences
Product advertising restrictions
National consumer protection regulations
Special rules in certain markets
reflecting local cultural values.
Advertiser’s responses
Adaptation
– Corporate image advertising
– Sports sponsorships
Innovation
– product placement
Diversification
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-11
Audience Characteristics
Strategy is to reach the intended target
audience with the minimum of waste.
Marketing strategist needs to know
Media distribution (number of copies)
Media audience compostion
Advertising exposure
Advertising perception
Consumer response
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-12
Global Media
Print publications providing global coverage
with regional language and content editions.
Pan-regional radio and television,the Internet
Important global media characteristics
Targetability
Client-compatible editorial
Editorial quality
Who advertises in global media?
Airline,financial services,
telecommunication,automobile,and tobacco
companies
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-13
The Promotional Message
Know customer habits and motivations,What
are consumers really buying and why?
Factors in developing the message:
Diffusion of the product or service into the market.
Criteria on which customers evaluate the product.
The product’s positioning.
The ideal is to have a world brand.
,…a product that is manufactured,packaged,and
positioned the same around the world.”
Localize international symbols with regional or
country area themes and personalities.
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-14
The Media Campaign Approach
What type of outside services to use?
How to establish decision-making authority?
Outside services are chosen by their quality
of coverage.
The value of outside expertise
Creative development skills
Media buying savvy
Specialty marketing knowledge
Conflict in the use of mega-agencies
Conflicts of interest when two competitors are
represented by the same agency
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-15
The Top 5 Global Ad Agencies
Ad Organization Headquarters
WPP Group London
Omnicom Group New York
Interpublic Group of Cos,New York
Dentsu Japan
Young & Rubicam New York
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-16
Decision-Making Authority
Centralized or decentralized
decisions about advertising?
Centralization= scale,synergy,consistency
Decentralization= proximity,flexibility,sensibility
Overall organizational goal to continually
improve advertising quality at the local level.
Coordinated decentralized approach to pan-
regional campaign development
strong central control
knowledge of local markets
avoids NIH syndrone
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-17
Pan-Regional Campaign Development
Preliminary Orientation
Regional Communication Strategy Definition
Advertising Creative Review
Qualitative Research Store
Research Review
Final Creative Review
Budget Approval - Home Office
Campaign Buys - Media Buys Local Countries
Source,Adapted from David A,Hanni,John K,Ryans,and Ivan R,Vernon,
“Coordinating International Advertising,The Goodyear Case Revisited for Latin
America,” Journal of International Marketing 3 (number 2,1995),83-98.
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-18
Measuring of Advertising Effectiveness
Typical effectiveness-testing techniques
Pre-testing of copy appeal and brand recognition
Post-testing of product or brand recognition
Measuring campaign’s impact on sales
Measures
Sales increases and sales pattern changes
Increases in consumer awareness and recall
Intention to buy,coupon return
There are no universally accepted
parameters of measurement and analysis to
compare one country audience to another.
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-19
50% off
with
Coupon
Other Promotional Elements
Personal Selling
Typically associated big-ticket (high-priced) items
such as industrial goods.
Proper training is crucial to success
Sales Promotions
Couponing,sampling premiums,education and
demonstration,point-of-purchase,direct mail
The impact of promotions on intermediaries
must be carefully considered.
Varying local regulations may
prevent or limit the types and
use of sales promotions.
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-20
Public Relations
Public Relations (PR) builds images
PR’s goal is understanding and acceptance.
PR provides internal and external acceptance
for the organization.
Internally,PR functions to
Provide Information through internal
publications (e.g.,newsletters
and intranets)
Help create the appropriate
corporate culture
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-21
Public Relations… continued
Externally,PR in multinational corporations is
concerned with
Building a global identity to build sales,product
and service differentiation
Providing information furthering
marketing objectives
Anticipating and counting
criticism of the organization
Taking a lead role in crisis
management
Copyright? 2001 by Harcourt,Inc,All rights reserved,20-22
Association Marketing
Sponsorship Marketing
Marketers provide funds as sponsors
of sports and cultural events.
Expected benefits are
association with a positive
image of global reach
and excellence.
Cause-related marketing
Combination of PR,sales promotion,
and corporate philanthropy that
expresses the organization’s
social vision and support for
a planned long-term social policy.
